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Tokenomics Definition
Tokenomics, familiar in the crypto world, is not always clear for those who are new in the cryptosphere. There is common knowledge that the definition of the term ‘tokenomics’ in its first and most direct sense is a self-funding mechanism for projects within the crypto economy. It’s important to understand that launching a crypto project without tokenomics is an ineffective way of doing business. Not to lose fortunes on ill-conceived schemes, previously elaborated plan aim to escape it.
‘Tokenomics is a key success factor. Undeveloped tokenomics guarantees project’s fail, no matter how innovative and exciting the concept is and how hard marketing is provided. Any token will not be funded by investors and get an engaged community without basic tokenomics.’
Liquid Lines Team
Role of tokenomics
Tokenomics is the most important starting document for understanding the underlying economics of the token. It is necessary to formulate and fix the concept of creating a token and a project, determine the value, scalability, ability to withstand inflation and incentives for using the token.
Main Project’s challenges
The main project's concerns are the lack of demand for the coin, frequent sale of coins by users, and price volatility.
A well-developed tokenomics allows to avoid such cases. The short list of the reasons is next:
Unreasonably large emission of tokens
Frequent distribution of coins to users to attract them
Too high interest rates for farming, mining, staking, etc.
Lack of opportunity for users to use the earned tokens, and as a result, fast sale and price dump.
Expert Team
Our long-term proven experience on crypto exchange market with projects of varying complexity allows us to develop tokenomics according to the market demands.
If you want to launch a successful project,
we are the team that can help.
Discover growth opportunities for your project
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“Tokenomics is the transformation of business interactions into the field of digital contracts and settlements.”
Chris J Snook
Founder of World Tokenomic Forum
Tokenomics as a Project Passport
Another part of tokenomics facilitates determination of business mode capabilities with focus on it’s financial stabilization. Every business model must be logical and scalable. Tokenomics should get a sense of the funds flows from the purchases and sales of the token, and what further actions should be directed.
Finally, tokenomics should get a sense of further investment feasibility and effectiveness of financial flows.
Tokenomics helps to answer these and other questions to professional investors.
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